Cover Image for Mass Layoff at Microsoft: Thousands of Jobs Cut, Xbox Division Severely Affected.
Wed Jul 02 2025

Mass Layoff at Microsoft: Thousands of Jobs Cut, Xbox Division Severely Affected.

A bad day for Microsoft.

Microsoft has announced a significant workforce reduction, marked by the layoff of approximately 9,000 employees, which represents around 4% of its staff. This event, considered the largest round of layoffs the company has seen in several years, was recently confirmed by the company. Although the exact profile of those affected has not been detailed, it has been reported that the video game sector, specifically the Xbox team, has suffered a severe impact.

This job cut comes just two months after Microsoft announced the elimination of an additional 6,000 positions. However, this new adjustment is the most substantial since 2023, when the company laid off 10,000 workers.

Despite the job cuts, Microsoft continues to make significant investments in artificial intelligence, an area that has not yet yielded the expected benefits. The company justifies these layoffs by arguing that they are necessary to prepare the company for future challenges. A Microsoft spokesperson mentioned that organizational changes are being made to ensure the success of the company and its teams in a constantly evolving market.